FxWirePro AUD/USD creeps higher, RBA minutes may rekindle rally

• AUD/USD inched higher on Monday     as investors turned their focus to the upcoming release of the latest minutes from the Reserve Bank of Australia.

•  The minutes due Tuesday are expected to provide further clarity on the rationale for the recent 25 basis point hike.   

•The governor indicated that a fresh rise in inflation left the central bank with limited options other than tightening policy, adding that the resilience in consumer spending and business investment had come as a surprise to the board.

• The Reserve Bank of Australia raised its rates to 3.85% earlier this month and minutes of that board meeting, due on Tuesday, could show how hawkish the members were about the outlook.

• Thursday’s jobs report is expected to show employment rising by 20,000 in January, following December’s robust 65,200 gain, while the unemployment rate is projected to edge up to 4.2%.

•  Immediate resistance is located at 0.7155(23.6%fib), any close above will push the pair towards 0.7205(Higher BB).

•  Support is seen at 0.7000 (38.2%fib) and break below could take the pair towards 0.69781(SMA 20)

Recommendation: Good to buy  around 0.7070 with stop loss of 0.7000 and target price of 0.7130